Six steps to buying a property - getting the ground work done

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December 15, 2014Rikki Stanley

If you want to ensure you sail smoothly through the open waters of buying a home, the best direction from which to set sail towards sunshine and happy days, is to follow these tips from Daniel Meade, your local home loan expert in Brisbane.

When you are telling friends about your property buying journey over a beer in your new back yard, would you prefer to tell a story of a smooth purchase from house hunting to opening the door to your new home, or one of storms brewing and icebergs being hit?

The best place to start is to get the ground work done before you even open realestate.com in your browser.

Six Steps to buying a property:

1: Get the ground work done:

Before you start negotiating that extra $5k on a purchase price, these components are essential:

Knowing your limit of how much you can afford to borrow and repay

Having a deposit saved

Having ALL costs of purchase and extras involved factored in

Having your Home loan product identified and/or a pre-approval in place

To begin your home loan application process or get a pre-approval for finance, you will need to apply with a lender for a specific amount, and if eligible, apply for any first home owner grants and concessions.

This enables you to know exactly how much you can afford when you are house hunting.

The good news is, your Mortgage Choice broker, Daniel Meade, can help you with all of this, including lodging your application with your chosen lender, and following your application through from submission to settlement, once you do find the property you want to buy.

3: Go House Hunting:

When you have your financial foundations laid and ready to be built on, you are now ready to go shopping. As with any successful shopping trip, to help you save money and not overspend on things you may not need in a property, write yourself a ‘features’ list.

Features list:

Take the emotion out of buying your home by creating a ‘what to look for list’. Include features such as a balcony, air conditioning, built in robes, car park, views, close to transport / shops/ parks etc.

Take this list with you to each property open house or inspection, and use it to rate each feature in each property out of 10. When you finish looking at all the properties, you have a visual scorecard to use as a comparison between properties. It will reduce emotional attachment and help you choose wisely.

4: Make an offer on your dream home:

Once you’ve found your property, follow these tips to make an offer:

Play it down – don’t appear overly enthusiastic, even if the property ticks all the boxes.

Building and pest – arrange an inspection before you purchase, and have it written into the contract as ‘subject to being satisfied with building and pest inspection’. This will ensure that if some nasty’s do turn up, you have the option to withdraw your offer, or use it to negotiate the price further.

Contract of sale - arrange for your solicitor / conveyancer to check the contract carefully, before you sign it.

Pitch your offer – submit your offer in writing, below the price you are actually prepared to pay. Ensure you specify any conditions you would like to be noted such as a time frame for moving in, and subject to finance being approved.

Alternatively, if the property is going up for auction, prepare for auction by following these guidelines:

Once your offer is accepted, you then exchange contracts and finalise paperwork with your real estate agent and mortgage broker.

During the period between contract acceptance and settlement, your broker will work on getting your finance approved with your lender, and your solicitor, settlement agent or conveyancer will advise you on the settlement date and other steps involved with the purchase, such as building and pest inspections and any related documents you may need to ensure settlement happens on time.

6: Collect your keys:

Congratulations, your ground work has helped you sail on through to becoming a new proud and savvy home owner! From here, there is one more step you can take once you’ve finished unpacking –

If this information has been helpful to you or might be relevant to someone you know, please share it.

Daniel is looking forward to helping you buy your first or next home. Thanks for reading our blog.

Important information

This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.

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At Mortgage Choice, we're about helping people make better choices with their finances because we believe that making better choices leads to a better life. We do this via a national network of franchisees, including professional mortgage brokers and financial advisers. They are committed to empowering customers by sharing their expertise and offering solutions that are personalised to customers' individual circumstances.

The information provided on this website is for general education purposes only and is not intended to constitute specialist or personal advice. This website has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should consider the appropriateness of the advice to your own situation and needs before taking any action. It should not be relied upon for the purposes of entering into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy. If any financial product has been mentioned, you should obtain and read a copy of the relevant Product Disclosure Statement and consider the information contained within that Statement with regard to your personal circumstances, before making any decision about whether to acquire the product. You can obtain a copy of the PDS by emailing homeloans@mortgagechoice.com.au or by calling 13 77 62. *Note: the home loan with the lowest current interest rate is not necessarily the most suitable for your circumstances, you may not qualify for that particular product, and not all products are available in all states and territories.#The comparison rate provided is based on a loan amount of $150,000 and a term of 25 years. WARNING: This Comparison Rate applies only to the example or examples given. Different amounts and terms will result in different Comparison Rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the Comparison Rate but may influence the cost of the loan.~Not all brokers or advisers offer the products of all lenders or solution providers.